Consideration
30 In light of the respondents' submission as to the consequence of grounds 2 and 3 if established, it is appropriate to first consider those grounds.
31 Before doing so, it is of assistance to refer to aspects of the conduct of the hearing relied on by the applicant, for although the two grounds allege different complaints, there is some overlap in the underlying material relied on to establish each.
32 The substantive hearing effectively commenced at 10.36 am, with the applicant called to give evidence. Shortly after the commencement of cross-examination, the following exchanges occurred:
MR FESEL: … Mr Grunsell?---Yes.
This is a statement of claim filed on your behalf with respect to these proceedings; is that correct?---That is correct.
If you could have a look at paragraph 17, which the court has so kindly produced, could you read that for a moment?---Yes.
And it says the second respondent notified the applicant orally that his employment was being terminated by reason of redundancy?---Yes.
Could you advise the court who is the second respondent?---The second respondent I believe is listed as Edward Doueihi.
Now - - -
HIS HONOUR: Mr Grunsell, in your affidavit, you don't identify any conversation, do you, with the second respondent saying that you're to be made redundant?---No. No, I don't, your Honour.
And you don't identify any conversation with the third respondent in which you are expressly told you are being made redundant, do you?---I refer to - if the third respondent was Mr Bradley Smith.
I understand the third respondent is Mr Bradley Smith, but nowhere in your affidavit do you directly depose to a conversation in which he says you are being made redundant; is that correct?---No, your Honour.
I see. Which paragraph do you say you say that in?---The agreement to pay or leave and notice and entitlements.
But, Mr Grunsell, the question I asked you was whether you were orally told by the third respondent that you were being made redundant. The answer to that question is nowhere does that appear in your affidavit, isn't it?---No, it didn't, your Honour.
MR ..........: ..... my evidence.
HIS HONOUR: And in circumstances where you weren't told you were going to be made redundant, your only basis for asserting you were made redundant is your reference to the notice and entitlements; is that correct?---That was correct, your Honour.
Yes. You do understand, don't you, Mr Grunsell, that the only basis upon which there can be a redundancy under section 119 is when the company itself has come to a view about a particular position and you had no communication to you that the company had come to that view; is that correct?---I'm not understanding the question, your Honour.
I will break it down for you. Mr Grunsell, the proceedings you've brought are ones alleging that you were made redundant. You've got no conversation in which you were told you were made redundant; correct?---Only the conversations that we were to be paid out my leave and my entitlements and everything that was owed to me.
That is not a conversation to the effect that the company had made a decision that your position was to be made redundant, is it?---I - I'm - I'm not sure, your Honour.
Yes. Yes, all right. Yes, Mr Fesel. Is there anything else you wish to ask?
33 And then:
MR FESEL: … Mr Grunsell, you have instructed your solicitor to plead in your application for relief from unfair dismissal that you were - - -?---Yes.
- - - told verbally that you were going to be made redundant?---It was in my contract conditions, and that was what was discussed.
Yes. If you listen to the question, please - - -?---Yes.
- - - my question is why isn't that in your affidavit of 13 April, specifically, the conversation that occurred in the meeting between yourself and Mr Smith and Mr Massoud on 25 August 2020?---I believe it might have been an oversight that I didn't put the actual wording in.
HIS HONOUR: Well, Mr - - -
MR FESEL: Would you care to tell - - -
HIS HONOUR: Just pause.
MR FESEL: - - - his Honour - - -
HIS HONOUR: Sorry. Mr Grunsell, the court - - -
MR FESEL: Sorry.
HIS HONOUR: - - - has just raised with you earlier - - -?---Yes.
- - - that there is nowhere in your affidavit a conversation in which either the second or third respondent said to you, "You're being made redundant." Do you wish to withdraw that evidence and change it?---No, I do not, your Honour.
Yes. Yes?---It was the - there was a conversation, I believe, that - that was - it was inferred and that was the - - -
I - - -?---The intent was - - -
I understand you rely - - -?--- - - - for - for my conditions - - -
- - - on what was said in relation to - - -?---Yes.
- - - entitlements. Yes. Is there anything else - - -?---Yes.
- - - you wish to say, Mr Fesel?
MR FESEL: No, your Honour.
34 That was the conclusion of the cross-examination. At 10.50 am, the applicant was asked one question in re-examination:
MS KUMAR: … Mr Grunsell, why did you form the view that redundancy pay was included as part of the entitlements that you were to be paid out?---Because I was told that there was no longer a requirement for me to work there and that it was part of my contract conditions that it was an entitlement, and that entitlement was agreed at the time of the - the meeting it was to be paid. So it was an entitlement ..... that - that included and there was no reference made to - to other entitlements, either, but they were - they were considered under the - the same as an entitlement that what I would be considered to be paid.
35 Two witnesses were called by the respondents. Cross-examination of both was completed by 11.09 am.
36 The parties had filed written submissions in advance of the hearing. The applicant's counsel was called on and asked by his Honour "how can you succeed?". Brief oral submissions were made by the applicant supplementing his written submissions, with the respondents not being called on. The primary judge then gave an ex tempore judgment, rejecting the applicant's application.
37 The hearing was briefly adjourned at 11.18 am before recommencing shortly thereafter with submissions as to costs under s 570 of the Fair Work Act. Relevantly, during those submissions, the primary judge made the following statements:
HIS HONOUR: Ms Kumar, no criticism of you. I am deeply troubled by the fact that your solicitor certified that there was a reasonably arguable case on the basis of an oral fact that did not exist. That is, that he was being made redundant. That paragraph 17 of your statement of claim had no evidentiary foundation. There's no affidavit evidence that has been adduced in support of that. It was obvious at the time of the drawing of the pleading that that was a critical fact that had to exist and there was no evidence in support of it. I'm deeply troubled as to whether in fact what the court should be doing is standing the matter down so it considers whether an order should be made against the solicitor personally because the certification that the proceedings had a proper basis seems to me to be an improper certification. Is there any reason why I shouldn't take that course?
MS KUMAR: Your Honour, again, my submission is simply that Mr Grunsell had formed the view that on the basis of what he had been orally told, he had been made - - -
HIS HONOUR: It has got nothing to do with Mr Grunsell. It has to do with a solicitor who is a lawyer certifying a pleading in respect of which there is no fact to support paragraph 17, and without that, these proceedings patently had no prospect of success…
38 His Honour also stated:
HIS HONOUR: Mr Fesel, the court is troubled by the nature of the case that has been brought and, in particular, the certification. Mr Grunsell isn't a lawyer. It clearly identified facts that he thought might or might not give rise to an allegation, and the pleader who has certified it pleaded something as to be orally being that his employment was being terminated by reason of redundancy, a material and critical fact for which there was no basis. Mr Grunsell shouldn't bear the consequences of that at first instance. It would seem to me his lawyer should. Is there anything you want to say in that regard?
39 I note that the statement of claim is in the following terms at [17]:
The Second Respondent notified the Applicant orally that his employment was being terminated by reason of redundancy.
40 The primary judge also had an exchange with the applicant's solicitor which confirmed that the pleading was drafted by a solicitor. The primary judge then returned to address counsel and said:
HIS HONOUR: Ms Kumar, I am troubled about the bringing of these proceedings but I do understand how it is that you have characterised them and how you've sought to advance them. And obviously you, no doubt, have heard what I've said in respect of circumstances by reason of which you say the criteria, if satisfied, should be pleaded in a different way. I do not regard that as anything for which you are responsible but what I'm minded to raise with you is the need for - if one does identify a defect with the pleading, please fix it.
41 The primary judge then ruled ex tempore against the costs application. Relevantly, in the later published judgment, the primary judge concluded at [22]:
The proceedings were run competently and diligently by counsel. The facts identified in the statement of claim could have been articulated with a greater clarity to reflect the argument developed by Ms Kumar. Whilst on one view, going beyond the pleaded case the submissions were lucid and confined. The respondents did persuade the Court that the applicant's arguments should be rejected but that does not mean that the arguments were hopeless. This is not a case where the Court can be satisfied the proceedings were instituted vexatiously or without reasonable cause. Nor is the Court satisfied that the rejection of the offer, which was, with all respect, on the minimal side of any endeavour to compromise, is one in which it was an unreasonable act to reject the offer in respect of proceedings in which ordinarily no order as to costs is made.
42 A number of observations from those passages recited above can be made at this stage.
43 First, it was accepted during the hearing that in the applicant's affidavit filed in support of his claim, it was not alleged that any of the respondents used the terms "redundant" or "redundancy" in the conversation they had with the applicant on 25 August 2020, but rather his case was advanced on the basis that is what was to be inferred from the conversation. It can be inferred that before the hearing the parties understood that the applicant was not suggesting the terms "redundant" or "redundancy" were used by any of the respondents.
44 Second, the applicant was legally represented throughout the proceedings, and the drafting of documents, including the statement of claim, reflect that they were legally drafted. The same can be said in respect to the application in the Fair Work Commission, at which time the applicant was also legally represented. It can also be taken, in that context, that the applicant in advancing his case had legal advice. The statement of claim is certified by his lawyer as having a proper basis for each allegation made in it.
45 Third, the applicant's cross-examination was very short. It commences at the bottom of page 6 of the transcript. The passage recited above at [32] commences at the bottom of page 7. The primary judge's interventions were protracted in respect to the limited cross-examination that occurred, and were critical of the applicant. In addition, it was accepted by the respondents in oral submissions in this Court that the proposition put by the primary judge to the applicant in cross-examination at [32] above (regarding the legal position of what is necessary to establish redundancy) is incorrect as to his assertion that the company must communicate to the employee that they are redundant.
46 Fourth, the primary judge's conclusion in rejecting the costs application reflects, inter alia, that the only criticism of the statement of claim is that the facts identified within it could have been "articulated with more clarity", in circumstances where the arguments in support were not "hopeless" and it had not been established the proceedings were instituted without reasonable cause.
47 As the respondents submitted, ordinarily, when a ground of appeal alleges procedural unfairness or bias on the part of the primary judge, that ground is to be addressed first: see, for example, Concrete Pty Ltd v Parramatta Design & Development Pty Ltd [2006] HCA 55; (2006) CLR 577 at [117] (Concrete) and Jorgensen v Fair Work Ombudsman [2019] FCAFC 113; (2019) 271 FCR 461 at [93] (Jorgensen). This is because, if the ground is upheld, it would strike at the validity and acceptability of the trial itself: Concrete at [117] and Jorgensen at [93]. As a matter of logic that must generally be so, because if that ground is established, the result is necessarily a re-trial. However, in this case, as referred to above, grounds 2 and 3 overlap and the result of either being established would be that the matter be remitted for re-trial. The finding challenged in ground 2 relates, inter alia, to questioning by the primary judge of the applicant, which is also complained of in ground 3. In that circumstance, it is most convenient to first consider ground 2, as it forms part of the factual context of ground 3.